Hut 8 repays Genesis Capital loan, saves company US$1.6M
TORONTO, March 2, 2021 - Hut 8 Mining Corp.
(TSX: HUT) announced that it has paid back its US$20M loan with Genesis Global Capital LLC ("Genesis") as planned, in full. The repayment of this loan means an extra $U2.4M for Hut 8, driven by the savings from interest expenses of US$1.6M.
"Hut 8 initially took out this loan with Genesis in November 2019 when bitcoin was close to US$7,000. This loan provided Hut 8 additional leverage to significantly benefit our balance sheet, as our bitcoin (which now sits at 3012 Bitcoin on balance), has more than doubled its previous all time highs in 2017" said Jimmy Vaiopoulos, Chief Financial Officer of Hut 8. "Hut 8 is now well capitalized. This full repayment of debt shows our position of strength in this fast growing industry."
"The benefits of this loan and it's repayment for Hut 8 signal the execution of our multi-pronged strategy to grow shareholder value," said Jaime Leverton, CEO, Hut 8. "We look to reduce expenses without reducing the bitcoin on our balance sheet. We look for revenue diversification strategies to provide increased downside risk protection. This is what Hut 8 is about and what we intend to keep doing as we grow."
As one of North America's most innovative, oldest and highest installed capacity Canada-based Bitcoin miners, a summary of recent announcements are:
- As of February 17, 2021 Hut 8 has 3,012 bitcoin on its current balance sheet, 1,000 of these bitcoin are in a Genesis yield account generating a 4% yield paid out in USD.
- Hut 8 holds more self-mined bitcoin than any other publicly traded bitcoin miner in the world. This is a tremendous benefit as investors seek assets such as bitcoin as an inflationary hedge.
- Hut 8 attained its goal of 1.0E/H earlier last year and is on track for a 30%+ increase in energy capacity-maintains its position as leader in installed mining equipment and capacity.
- Hut 8 currently has 1,073 petahash per second (PH/s) installed with an anticipated increase to 1,300+ PH/s as new equipment comes online.
- Hut 8 ranked 11th out of 10,000 in the 2021 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year
- Hut 8 recently achieved its goal of Investment Banking research and earned a (BUY) rating from HC Wainwright investment bank. This is paramount in achieving our objectives of greater institutional investment and capital inflows.
- Hut 8 signed a Global and Canadian First: Bold Energy and Blockchain Innovation Play Through an Exclusive MOU with Global Energy Partner Validus Power Corp. with the intention to secure further capacity expansion and greater energy flexibility.
About Hut 8: Hut 8 is one of North America's oldest and largest bitcoin miners. Hut has one of the highest installed capacity rates in the industry and is Top 5 largest holders of self-mined Bitcoin of publicly traded companies in the world. Recently ranked 11th (of 10,000) on the 2021 OTCQX® Best 50, the Hut 8 leadership team is continually looking for ways to challenge traditional approaches in order to find innovative, powerful, industry-leading solutions - a mindset now being applied to their Revenue diversification, ESG and carbon footprint reduction strategy. Stick with the company that has a plan for how to #grow Shareholder value regardless of #BTC market direction. #HodltheHut.
The Company's common shares are listed under the symbol "HUT" on the TSX and as "HUTMF" on the OTCQX Exchange.
Key investment highlights and FAQ's:?https://www.hut8mining.com/investors.
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Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as "plans", "targets", "expects" or "does not expect", "is expected", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Hut 8 Mining Corp.
HUT 8 CORPORATE CONTACT: Dea Masotti Payne, Tel: (204) 583-1695, Email: email@example.com